How Much House Can I Afford?
Estimate affordable home price from income, debt, and down payment.
About the How Much House Can I Afford?
How much house you can afford is set by your income, your existing debts and the rate -- not by what a lender is willing to approve, which is usually more.
How to use it
- Enter your gross annual income.
- Enter your monthly debt payments.
- Enter the rate and term you expect.
Worked example
On $90,000 a year with $500 of monthly debts at 6.5%, a common guideline lands near a $300,000 to $340,000 loan.
Common questions
- What is the 28/36 rule?
- Housing costs under 28% of gross income, and all debts under 36%. A guideline, not a law.
- Should I borrow the maximum?
- Approval is not affordability. Lenders do not know your childcare, commute or savings goals.
- Does the deposit change this?
- Yes -- it lowers the loan and can remove mortgage insurance.